While the standards-setting process for WiMAX technology seems to move forward at a snail’s pace, the business machinations around mobile WiMAX are developing faster than a speeding bullet, so to speak.
Indeed, Intel Corp.’s recent moves to exit the wireless handset chip business and immediately turn around and plunk down $600 million to invest in wireless broadband service provider Clearwire Corp.-and Motorola Inc.’s decision to then acquire Clearwire’s infrastructure provider NextNet Wireless Inc.-gives some guidance on how this controversial technology could develop in the not-so-distant future.
WiMAX is not a guaranteed success, but it’s getting legs. The fact that the UMTS TDD Forum is sending out e-mails highlighting its deficiencies leads me to believe that they think it’s got some power.
A slide entitled “Wireless Convergence is a Myth” from Texas Instruments Wireless Infrastructure Group says it best. The industry is always moving forward with new standards, and old standards are not going away. Carriers will continue to support GSM even as they roll out HSDPA.
When CDMA and GSM were competing head-to-head for second-generation deployments, no one had heard of the terms LTE or WiMAX. OFDM has been around a long time, but never at the front and center of the industry.
Today, wireless players are arguing internally about which version of wireless broadband technology should be deployed, and likely a few versions will be commercially deployed.
The Intel/Clearwire/Motorola announcement reminds me of Motorola’s initial foray into the SMR business. Motorola built the network, manufactured the handsets, and even operated the networks-Motorola single-handedly created an industry.
Later when the industry was running smoothly, Motorola sold its operations to Nextel Communications Inc. A little later, Craig McCaw invested more than $1 billion in Nextel, and the company moved from one proprietary technology to a better one-iDEN
Today, it looks like Intel is employing a similar strategy with wireless broadband: Intel is bankrolling McCaw’s Clearwire, and Motorola is taking over Clearwire’s proprietary technology, which has committed to deploying WiMAX technology built by Motorola.
Results: Intel will have a network and a service provider using its chips.
